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Kati Kettunen Director Education Services 27.9.2010

New role of Finnish Universities 2010 - autonomous from the State Development of the Export of Education in Finland. Kati Kettunen Director Education Services 27.9.2010. New role of Finnish Universities 2010 - autonomous from the State Background.

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Kati Kettunen Director Education Services 27.9.2010

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  1. New role of FinnishUniversities 2010 - autonomousfrom the StateDevelopment of the Export of Education in Finland Kati Kettunen Director Education Services 27.9.2010

  2. New role of FinnishUniversities 2010- autonomousfrom the State Background • StronginitiativefromUniversitiesalredy in late 1990’s (RectorsCouncil) • Why: • Demands of Internationalization (quality, competition) • Need to sharpenprofiles • Need to buildstrongerstrategicalliances • Need to strengthengfinancialfreedom and find new sources of finance • Need to strengthengprofessionalleadership and management •  Universitiessolution: moreautonomy

  3. New role of Finnish Universities 2010- autonomous from the State Background • Finnish Science and ThecnologyCouncilsEvaluation of the Structure of Public Research System 2003-2005 demanded • Morefocusedallocation of resurces • Better and strongerprioritizeing • Organizational- and stucturalchanges • Legistlational and finanacialchanges to solve the problems of internationalization • Change of attitude • OECD 2006: THE Challenge of FinnishUniversities is Internationalization

  4. New role of Finnish Universities 2010- autonomous from the State Structural development • Rector Yrjö Sotamaa of University of Arts and Design proposedthat an ”Innovation University” shouldbefoundedthroughmerger. • Helsinki Business School, • Helsinki University of Tecnology and • Univesity of Arts and Desingn • Innovation University inspiredpoliticians and businessmen. • Minister of Education set up a committeeheadedby the Secretary of Finance to plan the merger. • Commiteestressedthatwhenexecuteingmergergesinvestment to universitiesshouldbe made and financialautonomyincreased • Mergersexecuted: • Aalto-University, University of Turku, University of Eastern Finland

  5. New role of Finnish Universities 2010- autonomous from the State New University Law • December 2005 Minister of Education Mr. Kalliomäki invitedtwospecialist of law Mr. Rantanen and Mr. Jääskinen to makesuggestionshow to increase the financial and administrativeautonomy of universities. • Theysuggested: • Universitiesshouldbeseparatedfrom the state and becomejuristicpersons of publiclaw • New regulation for univerties finance • In universitiesadministrationthereshouldbeboard, consistory and operationaldirector (rector) • The boardshouldchooserector • The personel of universities: no longersivilservantsinsteademployees • Development of the new universitylawstarted

  6. New role of Finnish Universities 2010- autonomous from the State New University Law • Came into force 1.1. 2010 • Universities are • juristic persons of public law or • independent foundations (2)

  7. New role of FinnishUniversities 2010- autonomousfrom the State New University Law • Administration: • Collegial body: • Consist of members of academic community (autonomy) • Nominates the board • Discharges the board and rector from liability for the accounts • Board: • 40% of board members have to be external members(not members of academic community) • Nominates the rector • Decides the main goals of university’s activities, strategy and models of direction • Rector: • Operational director

  8. New role of FinnishUniversities 2010- autonomousfrom the State New University Law • External members of the board of University of Helsinki • Ari Helenius, Ph.D., (b. 1944) is a Professor of Biochemistry at the Swiss Federal Institute of Technology, • Eero Huovinen, Th.D., (b. 1944) is the bishop of the Evangelical Lutheran Diocese of Helsinki. • Dr. Jaana Husu-Kallio (b. 1959) is the Director General of the Finnish Food Safety Authority. • Gunvor Kronman, M.A., M.B.A., (b. 1963) is the Director of the Swedish-Finnish Cultural Centre Hanasaari and the Swedish-Finnish Cultural Foundation. • Jorma Ollila, M.Sc. (Eng.), M.Sc. (Pol.Sci.), M.Sc. (Econ.), (b. 1950) is the Chairman of the Board of Directors at Shell and Chairman of the Board at Nokia. • Minister Antti Tanskanen, Ph.D. (Econ.), (b. 1946) has held the positions of the CEO of the OKO Bank Group and the President of the Academy of Finland, among others.

  9. New role of Finnish Universities 2010- autonomous from the State New University Law • Own finance • Right to makecontracts, ownassets and property and have business activity • Responcibility in terms of law of financialactions • University propertytransfered to 3 companies, universitiesown 2/3 • Ministryfinancesuniversitiesbyallowances. Itcanalsomakeinvestments to universities • University negotiatesit’sowncollective labour agreement • University personelareemployees

  10. New role of Finnish Universities 2010- autonomous from the State Other development • Ministry’snew model for directinguniversities: development of performanceindicators and model for distributeing money for universities • Reasearchnotations • Degrees • Internationalization • Employmentaftergarduation • Qualitymeasures? • Collectingfinancesfromsociety: ministryinvest to eachuniversity 2,5 x the amout of money itcollectsfrom the society in years 2008 - 2010. • Donations to universities (€850-€250.000) aretax-deductable in 2008-2010

  11. New role of FinnishUniversities 2010- autonomousfrom the StateImpact on Universities • Significantgrowth of financialresponsibility and liability of performance • e.g. change of organisationalstructure in University of Helsinki – largerfinanciallyresponsibleunits • Need to deveop new models for directinguniversity • Need to developleaderchip and management skills in allareas of activity • New orientation to universityservices •  largepart of ”administration” transforming to services • Cost-effectivness • Customorientation • Outsoursing • Services areevaluated on the basishowtheycansupportuniversities in their main actionsresearch and education

  12. Challenges of the processState - Universities • Mutual goal • Lot of difficoult practical issues to resolve (taxation, ensureing capital, new labour agreement, new models and systems for governing the assets and property, etc.) • Most important for the universities in the process: • Maintaineing and increasing autonomy • Maintaneing the level of funding of universities and opening new chanels of finance

  13. Development of the Export of Education • Change of University Law 2008: • Subscribed education • Universities can provide for group of students studies leading to degree subscribed and financed by state of Finland, other state, international assosiation, finnish or foreing general goverment, foundation or private community.

  14. Development of the Export of Education • New University Law 2010: • Tuition fee tryout • Universities can in years 2010-1014 charge tuition fees from masterdegree programs taughed in foreing languages from students outside EU an ETA area. • Universities can determine the amount of the fee by them selfs • When charging fees university must have also a sholrship system for the program to support the students • Participateing in tryout starting 2010 • 9 universities, 10 polytecnics all together130 programs • less than half of the programs are charging fees at the moment • During the tryout period it’s efects to internationalization and quality of education of universities are evaluated

  15. Development of the Export of Education • Need for aplication fees are regognized • Reducing the number of unnessary aplications • Decision of the Council of State: From Interest to Call and Products – Policy for the Export of Finnish Education. (Spring 2010) • Objective: Finland is one of worlds leading economies which has built it’s sucess on the high quality of education system. • The share of education and know-how of education has substantially grown by the year 2015.

  16. Development of the Export of Education • Policy for the Export of FinnishEducation. • Funtioning home market is a prerequisite for sucessfullexport • Esporting the know-how of educationstrenghentsalsoatherareas of export • Networkingbringsadditionalvalue • It is important to set conreategoals for internationalizeing • Productisation is a prerequisite for international marketing • Onlyhighqualitycanlead to sucess • Clusterspeedsupexporting • HigherEducationInstitutesare the motors of education

  17. Sources: • Ulla Mansikkamäki: Report of the Execution of New University Law at University of Helsinki (2010) • Ero Kasanen, Esa Ahonen: Creating Aalto UniversityHow to Enhance Quality and Efficiency via Merger? Presentation 24.9.2010 in WSAN Helsinki Seminar • Decision of the Council of State: From Interest to Call and Products – Policy for the Export of Finnish Education. • Finlex: Univerisity Law 1.1.2010

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